The two parties signed a non-binding letter of intent, under which R1 would manage Presence Health's $2.2 billion annual net patient revenue, according to a news release. Approximately 1,000 employees would also transition from Presence Health to R1 as part of the arrangement.

Presence Health and R1 said in the release they expect to ink a definitive agreement and implement the new arrangement in the second quarter of 2018.

The letter of intent comes as Presence Health signed a definitive agreement to join St. Louis-based Ascension, a longtime R1 client.